TRENDING
The equity market in particular has become extremely good at luring and then trapping people into highly volatile reversals. Which especially is true for those rare moments when we may be tempted to trade against the prevailing trend, which of course continues up, up, and then up. Given the increasing number of traps placed in front of us on a weekly basis I have a hard time imagining how anyone could succeed trading equities on a long term basis without the aid of some sort of participation measure (a.k.a. market lie detector) as for example our very own Zero indicator:
I ought to be dedicating my E-Mini campaigns to rock legends more often as it seems to instantly bestow them with extra mojo right after entry. Of course the bullish divergence I observed on our Zero indicator Friday afternoon may have been a contributing factor as it was flashing ‘bear trap’ pretty much most of the session.
In case you have been hiding under a rock this weekend I’ve got good and bad news to report. In true Evil Speculator fashion let’s start with the bad news first: Malcolm Young died this weekend and rock & roll will never be the same. I was literally close to tears when I heard as Acadaca (how it’s often pronounced down under) was a huge inspiration not just for me but for my entire generation of troublemakers, and it is probably single handedly responsible for at least 10% of reported hearing loss in the West.
It’s time to talk about Forex as the temporary Dollar rally has effectively ended and is now launching significant advances in various cross pairs. You may recall I have been anticipating this very scenario since Monday after seeing a potential floor pattern on the EUR/USD in particular [1][2]. Unfortunately however the one pertinent horse I had in play appears to be the lame laggard of the bunch, which means I’ll have to find myself a sturdy banana tree later this afternoon.
